Franklin Templeton disclosed that two new ETF applications had been submitted to the United States Securities and Exchange Commission. The two products will hold the United States equity portfolio and will transfer the dividends to bitcoin in accordance with established rules, rather than repurchase the component shares.

Two products with different indices

The two products in the application are Franklin U.S. Equity Bitcoin DRIP Index ETF and Franklin U.S. Innovation Bitcoin DRIP Index ETF, which tracks the VettaFi U.S. Big Disk 500 Index and the United States Innovation 100 Index, respectively.

The file shows that the index was initially configured at 95% equities, 5% bitcoin. As the dividends continue to flow, bitcoin silos can be raised, but the ceiling is set at 20 per cent, which is then reversed at quarterly rebalancing.

Early or early September

The submission was still preliminary and management fees were not included in the document. In accordance with the declaration rules adopted for this time, the relevant product may become effective approximately 75 days later, or at the earliest possible time in September, if the process is smooth.

Unlike ETF, which directly deploys spot bitcoin, these products channel the cash flow of the shares into bitcoin, in an attempt to gradually increase the exposure to encrypted assets without changing the stock base.

Encryption ETF Starts a complication design

This application also reflects the shift of US-encrypted ETF market competition to product structure. The issuer has accelerated the rate of declaration of new products since the United States Securities Commission issued a general listing standard for encryption-related funds at the end of 2025.

  • Initial bitcoin weight is 5%
  • Bitcoin configuration ceiling of 20%
  • Product not disclosed rate

Market researchers had previously predicted that there might be more than 100 encrypted ETF listings in 2026. In addition to off-the-shelf products, issuers are competing around revenue design and packaging, the latest example of which is the Franklin Templeton programme.

Additional information:Franklin Templeton now operates a spot bitcoin ETF and this year has a Franklin Crypto department and has a monetization collaboration with Kraken parent company Payward; its Benji token money market fund has been deployed on multiple block chains.